First(603806) 华夏时报·2025-04-12 08:34Core Viewpoint - The company, Foster, reported a decline in both revenue and net profit for 2024, yet announced a significant increase in cash dividends to shareholders, raising questions about the rationale behind this decision [2][4]. Financial Performance - For 2024, Foster achieved a revenue of 19.147 billion yuan, a year-on-year decrease of 15.23% [2]. - The net profit attributable to shareholders was 1.308 billion yuan, down 29.33% compared to the previous year [2]. - The company has maintained a net profit exceeding 1 billion yuan for five consecutive years [2][4]. Dividend Policy - Foster plans to distribute a cash dividend of 2.60 yuan per 10 shares, totaling approximately 678 million yuan, with a dividend payout ratio of 51.82% [4]. - This dividend amount marks a historical peak, significantly higher than the previous years' distributions [4][5]. Shareholding Structure - The largest shareholder, Hangzhou Foster Technology Group, holds 48.47% of the shares, while the second-largest shareholder, Lin Jianhua, holds 13.47% [4]. - Lin Jianhua and his spouse control a total of 61.94% of the company, indicating a concentrated ownership structure [4]. Market Performance - The sales volume of photovoltaic encapsulant reached 281.06 million square meters, a year-on-year increase of 24.98%, but revenue fell to 17.504 billion yuan, a decrease of 14.54% [6]. - The sales volume of photovoltaic backsheet was 10.05 million square meters, down 33.50%, with revenue approximately 607 million yuan, a decline of 54.26% [6]. Business Segments - The photovoltaic materials division is the primary revenue driver, but both key products, encapsulant and backsheet, faced market challenges [6]. - The electronic materials and functional materials divisions saw revenue growth, but their overall contribution to total revenue remains limited [8]. Industry Context - The photovoltaic encapsulant market is characterized by intense competition, with leading companies exerting significant pricing power, impacting smaller players [7]. - The overall market dynamics have led to a situation where many encapsulant manufacturers are operating at a loss, prompting some to seek partnerships or expand into new markets to mitigate competitive pressures [7].